Tesla, the American electric vehicle and clean energy company, has been making waves recently with its latest updates. The company's stock underperformed in the market, finishing down two percent on the day to close at 193.81, while the NASDAQ was down just one tenth of a percent. There are several possible reasons for this underperformance, including the price cuts that Tesla has recently implemented. In this article, we will discuss the latest news on Tesla's price cuts on Model S and X in the US, discounts on inventory in Europe, update on Hardware 4, Tesla's expansion in China, Cybertruck reservation updates, and Waymo's job cuts.
Tesla has announced price cuts on its Model S and X in the US. The long-range S and the Plaid S have both been reduced by $5,000, while the long-range X and Plaid X have both been reduced by $10,000. This means that the Plaid Model S and X are now priced at $109,990, which is $10,000 under their initial unveiling price. However, the long-range S and X are still priced $10,000 above the price that they were immediately listed at following the unveiling.
It is important to note that the prices of Model S and X have come back to where they had been previously. This is not surprising, given that Tesla's inventory position has been noted several times. Furthermore, the impact of a $7,500 price cut on Model S and X would be in the same ballpark as a $750 price cut on Model 3 and Y. The opening price points are still pressed above the unveiling prices, and there is a larger spread between those base prices for Model 3 and Model Y than we did back at that time. However, not every single customer is going to be cross-shopping those, but some are, so it does make a difference. Plus, you layer in the $7,500 possible tax credit, and that spread grows even wider.
Tesla has also been considering the impact of Hardware 4 on its price cuts. While the forward-facing cameras are updated, the side repeater cameras look to be a little bit different, and there don't seem to be any notable new camera positions. For now, the layout seems very similar, but there had been some rumors or leaks that the other cameras would come later on.
Tesla is also offering discounts on new vehicles in its inventory in Europe. The discounts seem to be relatively wide in terms of the range, with some one to two percent, and some like the Model 3 in Germany up to nine percent off the list price. This is the kind of action that Tesla took before lowering the prices on Model S and X in the US. The discounts offered in Europe may be a prelude to some further price adjustments.
However, it is worth noting that margins are going to be crunched for a little bit due to the discounts, although Tesla's investor day did a good job of explaining why focusing on price cuts and margins right now is just a small part of the business that Tesla is working very hard and working very quickly on becoming.
Tesla's Hardware 4 has been in the news recently as well. The customer experience with the new hardware shows that most of the features for Autopilot aren't usable. Autopilot itself, Navigate on Autopilot, FSD Beta, and even a lot of the visualizations are apparently not rendering vehicles at this time. However, the forward-facing cameras have been updated, and the side repeater cameras look a little bit different. The layout seems very similar for now, but rumors and leaks suggest that other cameras may come later. It remains to be seen whether these vehicles will get those cameras retrofitted, or if they will be considered as Hardware 3.5 until the other cameras are added.
It's not surprising to see temporary situations like this in Tesla's history, given that the company moves pretty fast. However, the lack of full functionality for Autopilot and other features may be concerning for some customers. Tesla will likely need to provide more clear answers soon to keep customers satisfied and informed.
Despite the current limitations, Hardware 4 is an important step forward for Tesla in terms of autonomous driving technology. It will be interesting to see how Tesla continues to innovate and improve upon this technology in the future, and what impact it will have on the company's growth and success.
Overall, the latest updates on Tesla's Hardware 4 suggest that the company is making significant strides in its quest for fully autonomous driving technology. While there are still some limitations and uncertainties, the fact that Tesla is pushing forward with its plans is a positive sign for the future of the company.
Tesla's expansion in China has been a topic of interest for investors and analysts alike. The company's progress in Giga Shanghai has been closely watched, with many seeing it as a key part of Tesla's growth strategy in the world's largest auto market.
Recently, New China TV shared a walkthrough of Giga Shanghai. The channel, which is sponsored by the Chinese government, produced the video in English, which suggests that they are highlighting Tesla's progress to foreign investors. While this is a small thing, it may help alleviate some concerns around the relationship between Tesla and the Chinese government.
Additionally, an infographic has been circulating on social media, suggesting that Tesla has a 14 times lower fatality rate for its vehicles in China compared to other vehicles. While this would be a great number, the data seems to be based on insured vehicle counts and fatalities reported to tesladeaths.com, which is not the most reliable source. Until more accurate data is available, it's best not to take this information at face value.
Overall, Tesla's progress in China remains an important part of its growth strategy, and it will be interesting to see how the company continues to expand in this market in the future.
The Cybertruck has been a hotly anticipated vehicle since its unveiling in November 2019. Recently, there has been a report that Tesla has reopened Cybertruck reservations in Canada and Mexico. However, it's uncertain if Tesla actually ever stopped taking reservations in these countries in the first place.
In May 2020, Tesla had announced that it was no longer taking reservations for the Cybertruck outside of North America. However, the company was still taking reservations in the US, Canada, and Mexico at that time. It's unclear if Tesla had actually stopped taking reservations in Canada and Mexico, or if they are just restarting now.
Despite the uncertainty around this report, it's clear that there is still significant interest in the Cybertruck. The vehicle's unique design and capabilities have generated a lot of excitement, and it will be interesting to see how many reservations Tesla is able to secure in the coming months.
Waymo, a self-driving technology company owned by Alphabet, recently announced that it had cut approximately 8% of its staff, or a little over 200 jobs, throughout the course of the year. While this news didn't generate as much attention as job cuts at Tesla often do, it is still noteworthy.
The job cuts at Waymo highlight the challenges that self-driving technology companies face in developing and scaling their technology. Despite significant investments and progress, these companies are still working to develop reliable and safe autonomous driving systems. Waymo has been working on self-driving technology for more than a decade, and despite significant progress, it still faces challenges in scaling its technology to the point where it can be commercially viable.
The job cuts at Waymo also underscore the importance of continued investment and innovation in self-driving technology. While the development of autonomous driving systems has been slower than many had hoped, there is still significant potential for this technology to revolutionize transportation and improve safety on the roads.
Conclusion:
In conclusion, Tesla's recent price cuts on the Model S and X in the US, and discounts on inventory in Europe have generated significant interest among Tesla fans and investors. The discounts in Europe seem to be a prelude to some further price adjustments, which may impact Tesla's margins in the short term. However, Tesla's focus on long-term vision and expectations for the company remain steadfast, as evidenced by its continued investment in Hardware 4 and its progress in Giga Shanghai.
Despite some temporary setbacks, Tesla remains well-positioned to continue leading the way in electric and autonomous vehicle technology. The recent job cuts at Waymo highlight the challenges that self-driving technology companies face, but they also underscore the importance of continued innovation and investment in this field. As Tesla and other companies continue to push the boundaries of what is possible in electric and autonomous vehicle technology, it is clear that the future of transportation is one that will be both exciting and transformative.
Tesla, the American electric vehicle and clean energy company, has been making waves recently with its latest updates. The company's stock underperformed in the market, finishing down two percent on the day to close at 193.81, while the NASDAQ was down just one tenth of a percent. There are several possible reasons for this underperformance, […]
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